Novell India Expansion Plans Shelved On Cut In Allocations

Networking major Novell Inc has put on hold its India expansion plan following a cut in its allocation budget to India as part of its worldwide investment strategy.

The expansion plan of the Bangalore-based 100 per cent export-oriented unit, Novell India Development Centre (IDC), is expected to be completed only next year as the parent company has cut 60 per cent of the expansion budget for the Indian subsidiary. The IDC had planned to expand its software development activity by putting up a new building in Bangalore last year.

While sources in Novell maintained that IDC remained a priority set-up for the parent company, it was learnt that Glenn Ricart, chief technology officer, Novell Inc, who is currently on a visit to Bangalore, is expected to recommend a decision on the Indian expansion programme to the US headquarters.

 

The cut in the allocation budget to India is said to be part of the parent company's move to tighten its belt on its worldwide investment plans. Once the curb on investment is lifted, the Indian centre is expected to become a priority for it.

Novell's Indian subsidiary has received $ 6 million from its parent company as part of its budget for the financial year to develop new products and carry out other regular programmes.

The IDC is Novell's fifth R&D centre -- the other four being located in the US. The expansion of the IDC was earlier planned to be completed by mid 1997. It was to include a full-fledged training and large labs and other facilities.

While Novell Inc holds 96 per cent stake in the centre, its Indian partner, Onward Technologies, with which it has set up the Onward Novell in Mumbai, holds four per cent equity.

Notwithstanding investment inflow from the US, Novell IDC is set on designing and developing new products for worldwide release by the parent company. The centre is currently working on four new products. Of these, `BorderManager' addresses the problems of public networks like security, safety and bandwidth wastage. It helps organisations manage and control the Web traffic across the electronic border.

Its other products include 'Thunderbolt clustering technology', 'Personal Internet Directory' and cryptographic protocols.